Fans of the full-service Mexican restaurants El Torito and Chevys may want to take a seat. Real Mex (RM Holdco LLC) is entering an Asset Purchase Agreement with an affiliate of Z Capital Group, LLC. This means that the company is planning to sell over its assets as it voluntarily files for Chapter 11 Bankruptcy.
Besides El Torito and Chevys, Real Mex owns a variety of chain restaurants, including Acapulco Mexican Restaurant and Cantina, El Paso Cantina, Who Song and Larry’s, and Las Brisas.
Essentially, reorganizing under Chapter 11 of the U.S. Bankruptcy Code allows Real Mex to pass on some of their liabilities to Z Capital Group, according to Reuters.
You can rest easy for a bit, though, as for the time being Real Mex’s restaurants will still remain open to guests as if nothing has changed.
Bryan Lockwood, CEO of Real Mex, said in a statement:
“The support from Z Capital and Tennenbaum will help minimize any disruptions and ensure that the process is seamless for our guests, employees, and vendors. We’re looking forward to completing this transaction as swiftly as possible and emerging from Ch. 11 in a stronger financial position, poised for future growth.”
I remember frequenting El Torito’s Sunday brunch buffet and piling my plate with scrambled eggs, braised meats, sweet corn cakes, and a stack of waffles. Then, I’d wash the meal down with a hearty bowl of menudo. Honestly, it was heaven — making this news a little bittersweet.
Until things take a drastic turn, I’m definitely going to hit up El Torito’s Sunday brunch a few more times. That spread was sweet and you never know what the future holds.